SHANGHAI, Jan 5 (SMM)－ While many have attributed higher SHFE lead prices over the past two days to surging demand for electric vehicles’ battery replacement in the US due to cold weather, SMM believed it was more due to logistics constraints at home.
Many highways were closed due to heavy rains and snowfalls over the past week and this has led to logistics bottlenecks for lead transportations, SMM understood. Some smelters also worried that natural gas shortage may worsen because of the bad weather.
SMM analyst Wang Lan said the lead market in China remained weak without clear direction, and both sides of the market were prudent in their trading. She added that lead prices are likely to stay rangebound in the near term.
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